Trade Openness and the Environmental Kuznets Curve PDF Download

Author: Zheng Fang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper examines the impact of economic growth and trade openness on environment in 261 Chinese cities over the period of 2004-2013, using recently developed continuously updated fully modified method which allows for both cross-sectional dependence and endogeneity. Two types of pollutants, industrial waste water and sulphur dioxide are investigated, and three measures of openness are employed in the regression. From the results, we find that the environmental Kuznets curve hypothesis holds not only for the whole China, but also in different regions. It is estimated that wastewater pollution increases with economic development until per capita GDP reaching the turning point of 42,991-48,828 yuan (in constant 2002 price), which varies depending on the specific measure of trade openness. The turning point for sulphur dioxide is found to occur at a much lower income level around 9,588-10,663 yuan per capita GDP. Furthermore, export is mostly found to be positively related with pollution and the impact of import is likely to be negative for both the whole China and across regions, if the significance is identified in the estimation results.

Author: Savas S. Alpay
Publisher: Springer Science & Business Media
ISBN: 1461502713
Category : Business & Economics
Languages : en
Pages : 217

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Book Description
As the demand for environmental quality is increasing and as the current GATT rules monitored by the WTO are not very suitable for environmental protection, either a new international environmental organization may be formed soon or new environmental regulations may be added to GATT. In either case, understanding of the interactions between trade and the environment will be vital. Trade and the Environment presents both the theoretical and empirical exposition of (i) the impact of trade liberalization on environmental quality; (ii) the impact of environmental regulations on international competitiveness; and (iii) strategic trade and environmental policies. An important feature of Trade and the Environment as compared to earlier books is that it brings together the reciprocal interactions between trade and the environment. It can be used as the main or complementary textbook for a course on trade and the environment.

Author: Abdelkader Derbali
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
We investigate this study to examine the relationship between economic growth, financial development, trade openness and CO2 emissions using the ordinary least squares (OLS) models for a panel data of 40 European countries during the period from 1985 to 2014. To estimate this causality we refer to the Cobb-Douglas production function. The empirical finding indicate that there is evidence of bidirectional causality between economic growth and financial development, economic growth and trade openness, economic growth and CO2 emissions, financial development and trade openness and trade openness and two emissions. From the relationship between economic growth and pollution, we prove the existence of the environmental Kuznets curve. Furthermore, we confirm the feedback hypothesis of the bidirectional causality between trade openness and financial development. Also, we identify the neutrality hypothesis between CO2 emissions and financial development inflows. Finally, we validate the presence of the bidirectional causality between economic growth and financial development and between economic growth and trade openness in case of European countries.

Author: Jeffrey A. Frankel
Publisher:
ISBN:
Category : Globalization
Languages : en
Pages : 68

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Book Description
What is the effect of trade on a country's environment, for a given level of GDP? Some have observed an apparent positive correlation between openness to trade and measures of environmental quality. But this could be due to endogeneity of trade, rather than causality. This paper uses exogenous determinants of trade geographical variables from the gravity model as instruments to isolate the effect of openness. The finding is that trade may indeed have a beneficial effect on three measures of air pollution. Statistical significance is lacking for Particulate Matter, but is moderate for NO2, and high for SO2. Results for broader environmental measures are not as encouraging, but one can at least say that there is little evidence that trade has the detrimental effect on the environment that the race-to-the-bottom theory would lead one to expect. The larger effect appears to come via income itself: our results generally support the environmental Kuznets curve, which says that growth harms the environment at low levels of income and helps at high levels, and to support the proposition that openness to trade accelerates the growth process.

Author: World Bank
Publisher: World Bank Publications
ISBN: 0821372262
Category : Science
Languages : en
Pages : 162

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Book Description
Climate change remains a global challenge requiring international collaborative action. Another area where countries have successfully committed to a long-term multilateral resolution is the liberalization of international trade. Integration into the world economy has proven a powerful means for countries to promote economic growth, development, and poverty reduction. The broad objectives of the betterment of current and future human welfare are shared by both global trade and climate regimes. Yet both climate and trade agendas have evolved largely independently through the years, despite their mutually supporting objectives. Since global emission goals and global trade objectives are shared policy objectives of most countries, and nearly all of the World Bank's clients, it makes sense to consider the two sets of objectives together. This book is one of the first comprehensive attempts to look at the synergies between climate change and trade objectives from economic, legal, and institutional perspectives. It addresses an important policy question - how changes in trade policies and international cooperation on trade policies can help address global environmental spillovers, especially GHG emissions, and what the (potential) effects of (national) environmental policies that are aimed at global environmental problems might be for trade and investment. It explores opportunities for aligning development and energy policies in such a way that they could stimulate production, trade, and investment in cleaner technology options.

Author: Ayesha Gulistan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This study analyzes the impact of economic growth, energy consumption, trade openness, and tourism on environmental degradation measured by CO2 emissions by using annual data of 112 countries for the period 1995 to 2017. Furthermore, the study also analyzes the relationship of the variables as mentioned above in four income and five regional groups of the world. The findings confirm the existence of environmental Kuznets curve (EKC), and level of income (turning point) is also determined, which helps in the improvement of the environmental quality of selected sample countries. The results of the overall sample show that economic growth, use of energy, and tourism are proved to be harmful to the environment, whereas the result of trade openness is not statistically robust. Results of sub-samples are mixed. Findings of this study highlight some essential steps which must be taken by the government and international environmental agencies for the protection of the environment through efficient utilization of energy and sustainable tourism.

Author: Muhammad Shahbaz
Publisher: Taylor & Francis
ISBN: 1000892859
Category : Business & Economics
Languages : en
Pages : 337

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Book Description
In response to the damage caused by a growth-led global economy, researchers across the world started investigating the association between environmental pollution and its possible determinants using different models and techniques. Most famously, the environmental Kuznets curve hypothesizes an inverted U-shaped association between environmental quality and gross domestic product (GDP). This book explores the latest literature on the environmental Kuznets curve, including developments in the methodology, the impacts of the pandemic, and other recent findings. Researchers have recently broadened the range of the list of drivers of environmental pollution under consideration, which now includes variables such as foreign direct investment, trade expansion, financial development, human activities, population growth, and renewable and nonrenewable energy resources, all of which vary across different countries and times. And in addition to CO2 emissions, other proxies for environmental quality – such as water, land, and ecological footprints – have been used in recent studies. This book also incorporates analysis of the relationship between economic growth and the environment during the COVID-19 crisis, presenting new empirical work on the impact of the pandemic on energy use, the financial sector, trade, and tourism. Collectively, these developments have improved the direction and extent of the environmental Kuznets curve hypothesis and broadened the basket of dependent and independent variables which may be incorporated. This book will be invaluable reading for researchers in environmental economics and econometrics.

Author: Brian R. Copeland
Publisher: Princeton University Press
ISBN: 9780691124001
Category : Business & Economics
Languages : en
Pages : 312

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Book Description
Nowhere has the divide between advocates and critics of globalization been more striking than in debates over free trade and the environment. And yet the literature on the subject is high on rhetoric and low on results. This book is the first to systematically investigate the subject using both economic theory and empirical analysis. Brian Copeland and Scott Taylor establish a powerful theoretical framework for examining the impact of international trade on local pollution levels, and use it to offer a uniquely integrated treatment of the links between economic growth, liberalized trade, and the environment. The results will surprise many. The authors set out the two leading theories linking international trade to environmental outcomes, develop the empirical implications, and examine their validity using data on measured sulfur dioxide concentrations from over 100 cities worldwide during the period from 1971 to 1986. The empirical results are provocative. For an average country in the sample, free trade is good for the environment. There is little evidence that developing countries will specialize in pollution-intensive products with further trade. In fact, the results suggest just the opposite: free trade will shift pollution-intensive goods production from poor countries with lax regulation to rich countries with tight regulation, thereby lowering world pollution. The results also suggest that pollution declines amid economic growth fueled by economy-wide technological progress but rises when growth is fueled by capital accumulation alone. Lucidly argued and authoritatively written, this book will provide students and researchers of international trade and environmental economics a more reliable way of thinking about this contentious issue, and the methodological tools with which to do so.

Author: Paul Brenton
Publisher: World Bank Publications
ISBN: 1464817731
Category : Political Science
Languages : en
Pages : 179

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Book Description
While trade exacerbates climate change, it is also a central part of the solution because it has the potential to enhance mitigation and adaptation. This timely report explores the different ways in which trade and climate change intersect. Trade contributes to the emissions that cause global warming and is itself also affected by climate change through changing comparative advantages. The report also confronts several myths concerning trade and climate change. The Trade and Climate Change Nexus: The Urgency and Opportunities for Developing Countries focuses on the impacts of, and adjustments to, climate change in developing countries and on how future trade opportunities will be affected by both the changing climate and the policy responses to address it. The report discusses how trade can provide the goods and services that drive mitigation and adaptation. It also addresses how climate change creates immense challenges for developing countries, but also new opportunities to promote trade diversification in the transition to a low-carbon world. Suitable trade and environmental policies can offer effective economic incentives to attain both sustainable growth and poverty reduction.

Author: Kevin Gallagher
Publisher: Edward Elgar Publishing
ISBN: 1848446047
Category : Political Science
Languages : en
Pages : 369

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Book Description
Handbook on Trade and the Environment is a good source for those looking for a better understanding of political issues, of legal debates, and of the state of discussion between government, industry, NGO, and private sector groups on topics that are not often treated elsewhere. Judith M. Dean, World Trade Review I would recommend the book to anyone concerned with the interaction of trade and the environment. John Goodier, Reference Reviews In this comprehensive reference work, Kevin Gallagher has compiled a fresh and broad-ranging collection of expert voices commenting on the interdisciplinary field of trade and the environment. For over two decades policymakers and scholars have been struggling to understand the relationship between international trade in a globalizing world and its effects on the natural environment. The authors in this Handbook provide the tools to do just that. The editor s well-worked introduction synthesizes the emerging themes of the collection, which is divided into three sections: trade and environmental quality, trade and environmental politics, and trade and environmental policy. Topics include the extent to which trade liberalization creates pollution havens where dirty industries flock to poorer countries with lax environmental standards, and conversely, how multinational corporations bring cleaner environmental technologies to developing countries when they choose to move abroad. The volume also addresses the extent to which national environmental policy and/or global environmental agreements clash with the emerging rules of the World Trade Organization and whether such environmental policies hinder export competitiveness. Finally, numerous political economy analyses of the complex political coalitions that arise to adapt to and mitigate changes in trade and environmental policy are provided. In addition to broader overviews of the field, in-depth case studies of nations and regions are offered, including the United States, the European Union, China, India and Mexico as well East Asia, Latin America, and Africa. The volume will serve as a guide for scholars new to the field as well as students and policy-makers needing a quick reference to the research on the interface between trade and the environment.